SEC Slaps OTC Link for SCI Compliance Failures
Key Summary
The SEC has censured OTC Link LLC for repeated compliance failures related to Regulation SCI, ordering the firm to pay a $575,000 civil penalty. The case highlights the need for enhanced investor protection and market integrity, particularly in the context of investment schemes targeting vulnerable populations.
Background
The Securities and Exchange Commission today censured New York-based broker dealer OTC Link LLC and ordered it to pay a $575,000 civil penalty for longstanding violations of Regulation Systems Compliance and Integrity (SCI).
Findings
According to the SEC’s settled complaint, OTC Link LLC failed to maintain adequate controls and procedures to ensure the integrity of its systems, leading to repeated compliance failures.
Enforcement Action
The SEC deemed OTC Link LLC’s repeated SCI violations a serious threat to the stability and integrity of the US financial markets.
Resolution
As part of the settlement, OTC Link LLC agreed to pay a $575,000 civil penalty and to implement enhanced controls and procedures to ensure compliance with Regulation SCI.